CSOP Hang Seng Biotech ETF (03174.HK) Up 4.32% as FDA Grants Priority Review to BeiGene Combo

NewTimeSpace News: As of 10:14 on November 5, CSOP Hang Seng Biotech ETF (03174.HK) rose 4.32% to a latest price of HK$3.674. The ETF has so far traded 305,400 units today, with turnover of HK$1.1117 million and an average price of HK$3.640; its turnover rate is 0.119%. It has gained 8.96% week to date. The net asset value per unit is HK$3.5269, and assets under management stand at HK$906 million. (Note: NAV and AUM are as of November 4; the week-to-date change is based on the October 30 close of HK$3.372.)

Hong Kong's innovative drug sector extended its rally on November 5. The US Food and Drug Administration has accepted BeiGene's supplemental new drug application for Brukinsa (zanubrutinib) combined with rituximab in a new indication and granted priority review, for previously untreated adult patients with mantle cell lymphoma; the filing is based on the pivotal MANGROVE Phase 3 study, with full results to be presented at the 68th American Society of Hematology annual meeting on December 13. BeiGene's Hong Kong shares rose 5.01% to HK$243.20, a 52-week high, while WuXi AppTec gained 4.15%, WuXi Biologics 4.30% and Innovent Biologics 4.35%. JD Health and Sino Biopharmaceutical rose more than 7%, and the Hang Seng Stock Connect Healthcare C Index gained 2.79%. Separately, Germany's Fresenius signed an exclusive development agreement with WuXi Biologics covering up to 37 biosimilar candidates.

CSOP Hang Seng Biotech ETF (03174.HK) closely tracks the Hang Seng Biotech Index. The index reflects the overall performance of the 30 largest biotech companies listed in Hong Kong that are eligible for Stock Connect, including pre-revenue companies listed under Chapter 18A of the Listing Rules. Constituents span the Hang Seng industry classifications of biotechnology, pharmaceuticals, pharmaceutical distribution, pharmaceutical and biotech contract services, and medical equipment and supplies, weighted by free-float market capitalisation with a 10% cap on any single constituent.

Shenwan Hongyuan Securities believes innovative drugs are becoming the core earnings driver for pharmaceutical companies: with the impact of generic-drug volume-based procurement fading, key products are entering a dense payoff period and R&D pipelines continue to expand; as new drugs reach the market, revenue mix will improve and the long-term growth logic remains clear.